Microsoft lays out appeal against CMA’s stand on Activision Blizzard deal

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Microsoft is set to challenge UK’s Competition and Markets Authority (CMA) after the regulator blocked the Activision Blizzard acquisition claiming that it will disrupt the cloud gaming sector, which is set to grow at a substantial rate in the future.

The news came as a major blow to the company as the reports from CMA investigations did show positive signs of the market regulator approving the deal. As of now, Microsoft has to convince them during their appeal else the deal could be blocked for another 10 years.

Microsoft revealed that it had filed an appeal against CMA’s decision to block the acquisition to Britain’s Competition Appeal Tribunal (CAT) along with a summary of its arguments.

The company plans to argue over the errors made by CMA during its calculation and assessment of market share data for cloud gaming services. Microsoft also intends to contest CMA’s perception of the market for cloud gaming and the impact of the deal.

Microsoft Corporate Vice President Rima Alaily said, “The CMA’s decision was flawed for multiple reasons, including its overestimation of the role of cloud streaming in the gaming market and our position in it, as well as its unwillingness to consider solutions that received overwhelming industry and public support,” according to Reuters.

“We are confident in the strength of our appeal and the binding commitments we have made to increase competition and choice for players today and in the future,” she further added.

While the deal was blocked by the CMA in the UK, the same was approved by the EU’s competition authorities soon after, saying that the remedies offered by Microsoft regarding the cloud gaming sector and the gaming sector in general is acceptable.

Microsoft also has to convince the Federal Trade Commission in the USA after they released the scheduling order against the Activision Blizzard acquisition. It remains to be seen how the company will convince the market regulators.